Tesla has long been the leading force in the electric vehicle (EV) market, pushing the boundaries of functionality and performance far beyond what any of its competitors have been able to achieve. In recent years, however, Tesla has also made its mark not just on performance but also on technology and affordability. Tesla’s strategy? To keep cutting prices on their vehicles.
Tesla has been relentlessly cutting prices since it rolled out its electric vehicles to the public, and that trend shows no signs of stopping. The Model 3 has seen its prices drop by over $13,000 since its launch in 2018, while the Model Y has seen a drop of almost $7,000 since the same timeframe. Other models have seen sizable cuts as well. These lower prices make Tesla’s electric vehicles more accessible to a wider range of consumers and give it a huge leg up on its competitors who are unable to match Tesla’s prices.
That isn’t the only way that Tesla is using its price cuts to fuel EV sales. Tesla also regularly offers generous rebates, subsidies, and tax credits to encourage buyers to go electric. Not only does this result in Tesla cars becoming more affordable for more people, but it also creates a visible network effect around electric vehicles that encourages more people to go electric when they’re considering making the switch.
Besides discounts, Tesla has also implemented a number of strategies to make the entire process of buying and owning an electric car more accessible, from providing charging infrastructure to offering leasing options to offering software updates to existing customers. All of these strategies act in synergy to make electric vehicles more affordable to a wider range of buyers, even beyond the discounts that Tesla offers.
In short, Tesla’s strategy to fuel EV sales is simple: Keep cutting prices. By doing so, Tesla makes its vehicles more affordable and accessible to a wider range of buyers. This strategy is further supplemented by rebates, subsidies, tax credits, easy access to charging infrastructure, and leasing options, making electric vehicles much more attractive. With these strategies, Tesla continues to dominate the electric vehicle market, and that trend looks likely to continue in the future.
